Jaguar Health extends loan maturity, issues stock for royalty interest reduction

San Francisco-based pharmaceutical company Jaguar Health, Inc. and its subsidiary Napo Pharmaceuticals have amended a financial agreement to extend the maturity date of a significant loan, a crucial move for a company that InvestingPro data shows is operating with significant debt burden and negative EBITDA of -$27.94M. The announcement came from a recent 8-K filing with the Securities and Exchange Commission.

On Monday, Jaguar Health entered into a Note Amendment with Streeterville Capital, LLC, modifying the terms of an existing secured promissory note. Initially issued on January 19, 2021, the note’s original principal amount was $6,220,812.50. Under the amendment, the maturity date of the note has been pushed back to July 20, 2025, providing the company with additional time to fulfill its financial obligation. This extension comes as the company faces challenging market conditions, with its stock down over 85% in the past year and currently trading at $0.84.

In a separate but related financial maneuver, Jaguar Health has also entered into an Exchange Agreement with a holder of the company’s royalty interest. This agreement, dated January 28, 2025, resulted in the issuance of 1,290,000 shares of Jaguar Health’s common stock. This transaction reduced the outstanding balance of the royalty interest by $1,094,952. The shares were issued without registration under the Securities Act of 1933, in reliance on the exemption provided under Section 3(a)(9) of the Act.

Jaguar Health, which trades on The Nasdaq Capital Market under the ticker (NASDAQ:JAGX), specializes in pharmaceutical preparations. The company’s business address is located at 200 Pine Street, Suite 400, in San Francisco, California.

This strategic financial restructuring is part of Jaguar Health’s broader efforts to manage its capital and financial obligations effectively, with current debt-to-equity ratio at 2.52. The details of the Note Amendment and the form of the Exchange Agreement have been filed as exhibits to the company’s 8-K filing and are incorporated by reference. For deeper insights into Jaguar Health’s financial health and 12 additional exclusive ProTips, visit InvestingPro, where you’ll find comprehensive analysis and our detailed Pro Research Report, part of our coverage of over 1,400 US stocks.

The information contained in this article is based on Jaguar Health’s press release statement and the associated SEC filing.

In other recent news, Jaguar Health, Inc. has reported a net revenue of approximately $3.1 million for the third quarter of 2024, marking a 14% increase from the previous quarter and an 11% increase from the same period last year. However, the company also reported a net loss of $9.9 million, albeit with reduced operational loss compared to the previous year. In parallel, the U.S. Food and Drug Administration (FDA) has granted orphan-drug designation to Jaguar’s drug, crofelemer, for the treatment of cholera-related diarrhea, providing development incentives and a seven-year period of marketing exclusivity in the U.S. upon potential approval.

Jaguar Health is also seeking a partner for the development and commercialization of its new prescription drug candidate, NP300, aimed at treating non-infectious diarrhea in dogs. This follows the FDA’s recent extension of conditional approval for Canalevia®-CA1, their first-generation antisecretory drug for chemotherapy-induced diarrhea in canines.

In addition, Jaguar Health is preparing for the presentation of Phase III OnTarget trial results, the advancement of crofelemer in rare diseases, and the commercial launch of Gelclair for oral mucositis treatment. The company anticipates significant catalysts in the next six months, including the development of crofelemer for cancer therapy-related diarrhea.

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